Caroline Bishop
Jun 13, 2026 13:26
KuCoin has but to adjust to a $2M Seychelles court docket ruling over deserted CoinPoker tokens, elevating questions on token delisting practices.
A Seychelles Supreme Court docket ruling has ordered cryptocurrency trade KuCoin to pay over $2 million to Swiss investor Didier Rabl, however the fee stays excellent. The case facilities on the delisting of 21 million CoinPoker (CHP) tokens, which KuCoin allegedly deemed ‘deserted’ after sending a collection of withdrawal notices in 2021.
In line with court docket paperwork, the Seychelles court docket declared on December 11, 2025, that Rabl is the rightful proprietor of the CHP tokens and awarded him $2 million in USDT, plus $10,000 in ethical damages. Nevertheless, KuCoin’s Seychelles-based entities, which didn’t seem or defend the case, have but to adjust to the judgment. The Monetary Providers Authority (FSA) of Seychelles confirmed receipt of the ruling, stating that KuCoin-linked entities had already been pressured to stop operations within the jurisdiction after a digital asset service supplier (VASP) license software was rejected in June 2025.
This authorized battle raises broader issues about how exchanges deal with delisted tokens. KuCoin’s emails to Rabl in 2021 reportedly warned that failure to withdraw CHP by a specified deadline would consequence within the tokens being thought of ‘deserted,’ with no restoration rights. Nevertheless, the court docket discovered that these unilateral notices didn’t meet the contractual or authorized requirements required to strip a buyer of their token possession. The emails additionally went unread, and no further notification strategies had been used, equivalent to telephone calls or bodily mail.
Implications for Token Delisting Practices
The court docket’s resolution might set a precedent for a way exchanges handle delisted belongings. KuCoin’s phrases of use on the time allowed the platform to droop or terminate accounts however lacked express language claiming possession of unwithdrawn tokens post-delisting. The court docket dominated that KuCoin remained obligated to safeguard buyer belongings and fulfill lawful withdrawal requests, even after delisting.
CHP tokens, initially issued as a part of a poker-focused blockchain challenge, have seen declining market exercise. As of June 13, 2026, CHP trades at $0.0007398, with a market cap of simply $101,726. This displays each decreased trade help and the challenge’s diminished liquidity. The broader crypto market has seen related delisting controversies, together with KuCoin’s latest elimination of Commerce Tide Token (TTD) on June 5, 2026, below its Particular Remedy guidelines, citing low liquidity and compliance issues.
Authorized and Regulatory Tensions
Authorized consultants spotlight the bounds of the Seychelles ruling, as KuCoin didn’t take part within the proceedings. Joshua Chu, co-chair of the Hong Kong Web3 Affiliation, identified that the judgment was issued ex parte—with out enter from KuCoin’s entities—and holds no binding pressure outdoors Seychelles. But, the case nonetheless underscores the obligations of exchanges working as VASPs to segregate and safeguard consumer belongings.
For now, Rabl has reportedly initiated additional authorized motion in Seychelles to implement the award. In the meantime, KuCoin has not responded to a number of requests for remark.
With regulatory scrutiny rising globally, unresolved disputes like this one may amplify requires tighter oversight of cryptocurrency exchanges, notably concerning delisting procedures and consumer asset protections.
Picture supply: Shutterstock
